Electricity distribution companies are accepting a “modest” Commerce Commission decision allowing them to set prices relative to inflation but the Major Electricity Users Group warns it may cause a biased precedent.

The decision is part of a process to address the way the country’s 29 electricity distribution companies set default prices – or price-quality (the maximum average price that lines companies can charge).

The Commerce Commission has delivered a warning to two NZX-listed energy companies allegedly in cohorts to block out other bidders for a Nelson power company six years ago.

The decision was the last outstanding issue in the Commission’s electricity market investigation, published in May 2009.

In 2003, TrustPower Limited (NZX:TPW) acquired the Cobb hydroelectric power station (from NGC Holdings Limited) for $92.5 million.

Oversight of the Commerce Commission, and responsibility for future appointments to the watchdog, has moved from the pragmatic Simon Power to more hard-nosed free marketeer Rodney Hide.

For those on both sides of the regulatory fence, recent events have been a case of win some, lose some.

Telcos, cancel your party plans: The Terminator is back.

Just two days after her departure, former Commerce Commission chair Paula Rebstock is back, on a mission to help her successor push through a raft of  investigations into the telecommunications industry.

Yesterday, Dr Mark Berry – the so-called fox in the henhouse – became the commission's new chairman.

From 9am today, Mr Mark Berry – recently associated with a lobby to radically reform the Commerce Commission – becomes the competition watchdog's new boss. And, by an accident of recent history, our telco commissioner too.

As the government announced New Zealand’s largest ever telecommunications shake-up yesterday, Commerce Commission chairwoman Paula Rebstock quietly exited stage left.

As of today, Mr Mark Berry is the commission’s new boss.